MacarthurCook Property Securities (MPS)

[lonewolf]

Despite the outstanding complaint by Pelorus, MPS is pushing ahead with its Revised Non-renounceable Entitlement Offer .

The terms are largely the same as the initial offer but the rights units is now priced at S$0.044 instead of S$0.0454.

You can see AIMS is really rushing through this from the investor Presentation . In the content on page 2, there is a 'Takeovers Panel Proceedings' but it has been removed from the main presentation.

Another slip-slop job with plenty of 'scar tactics' elements thrown in and scrambling by AIMS when they realised that the S**T is hitting the fan. It feels a little like 'groundhog day' for me ala MI-REIT.

[money]

MPS is a sad story of high leverage gone wrong. It is a matter of time that first ship lease and rickmers follow this sad path.. In fact, i think MIIF would suffer the same fate, although speculators would have more time to exit from MIIF before realising the inevitable.

[propertyinvestor]

When RBA keeps cuting interest rates to 2% or less, MPS will recover in due course. So theres hope for those buying the rights now.

[lonewolf]

MPS has won its litigation against TFML Limited, the current responsible entity of P-REIT (ASXXT), and Zhaofeng Funds Limited (formerly known as RFML Limited) the former responsible entity of P-REIT.

A judgement in favour of MPS the sum of $17,764,204 was ordered by the judge.

[ S O U R C E ]

Based on an issued units size of 361,214,457, the judgement represent $0.049 per units; provided TFML cough out the money.

[KopiKat]

MPS has won its litigation against TFML Limited, the current responsible entity of P-REIT (ASXXT), and Zhaofeng Funds Limited (formerly known as RFML Limited) the former responsible entity of P-REIT.

A judgement in favour of MPS the sum of $17,764,204 was ordered by the judge.

[ S O U R C E ]

Based on an issued units size of 361,214,457, the judgement represent $0.049 per units; provided TFML cough out the money.

Congrats! But, also need to clear this 1st,

TFML Limited has told the Court that it intends to appeal and will apply for an order staying execution of the judgment until the appeal is determined. If TFML Limited is successful in obtaining a stay of execution, Responsible Entity will be required to await determination of the appeal before the amount due under the judgment is recovered.

[Nick]

11 for 20 rights issue at S$0.0771 / rights share.

http://info.sgx.com/webcoranncatth.nsf/V...000079654/$file/NonRenounceableRightsIssue.pdf?openelement

Anyone vested ?

(Not Vested)

[KopiKat]

A very positive writeup in TheEdge this week. Some highlights,

- Debt free from 31-May, after 2 Rights Issues
- Planning Cash Distribution for last Q of this year (not sure if FY or Calendar but based on next point on plan for Unit Buy Back, possible for Calendar Year ie from end-Dec quarter) ; Est. PBT = A$2.5Mil to A$3Mil
- Plan for max 10% Units Buy Back from Sep-13 (budget A$3.5Mil)
- Plan to grow MPS portfolio, taking advantage of low interest rate (lowest in 30 years)
- Current portfolio : Listed Property Securities (24%) + Unlisted Securities (76%)
- EGM on 4-Sep : Requisitioned by group of shareholders with slightly more than 5% holdings to terminate MPS and replace the mgmt with their own ie. to wind up MPS
- Earlier law suits with Pelorus still not settled but Pelorus appears to have given up their opposition and reduced theri stake in MPS to below 5%
- MPS lawsuit against Pelorus unit (P-REIT) under appeal and expected to be decided soon. A decision in favour of MPS will boost NAV by A3.3ct (total A$17.7Mil + costs)
- Proforma Post Rights NAV= 11.6ct (shld be A$, need to verify)
- AIMS currently holds 26.3% of MPS, up from 19.9% prior to the Rights Issues

The article is based on an interview with George Wang and includes his other investments, notably AAREIT (AIMSAMP).

[Drizzt]

how much dividend yield are we expecting from this.

[KopiKat]

how much dividend yield are we expecting from this.

Have to estimate from the no. of units available = 506,286,870, which translates to PBT = A0.49ct - A0.59ct / unit. How much Tax? Last done Share Price = S8.9ct (rather illiquid as Vol = 150 lots). Ball park estimate <5% for a start??

IMO, the main attraction will be the discount to NAV, assuming everything goes smoothly...

PS. I'm not up-to-date with MPS and is now just reading the SGX Annc... Also realised that many of the points from the article is available in SGX Annc... Perhaps lonewolf would be able to give better insights.

References
Capital Management initiatives 12 Aug 13
Notice of change of interests of substantial holder 1 Jul 13
Fund Update 3 Jun 13
Allotment under Entitlement Offer 27 May 13

[lonewolf]

Looks like TFML has failed in its appeal against the judgement to pay MPS a sum of $17,764,204.

[ SOURCE ]

The Court of Appeal allowed TFML’s appeal and MacarthurCook’s cross appeal. The effect of the Court of Appeal decision is that:
- MacarthurCook’s judgment against TFML for $17,764,204 plus costs is set aside;
- MacarthurCook is to pay TFML’s costs;
- Judgment is given to MacarthurCook for $17,332,229 against Zhaofeng Funds Management
Ltd.

Its instructive to note that even MPS noted in its press release that "The capacity of Zhaofeng Funds Management Ltd to satisfy the judgment is unknown. This entity is not known to have substantial assets"